DUBAI, May 23: Emirates Telecommunications Corp (Etisalat) said it signed a deal on Tuesday for a $40.1 million licence to offer mobile phone services in Afghanistan. A company statement said Etisalat was seeking to partner with local investors to set up a GSM company by 2007.

“This agreement is very important to us as it gives us entry into a large emerging market,” Etisalat Chairman Mohammad Hassan Omran said in the statement. “This licence is a reflection on our strategy to expand internationally.”

“Afghanistan is a market with good potential. With a population of 28 million and a growth rate of 4.5 per cent, GSM penetration still remains extremely low,” Mr Omran said.

Etisalat said its licence was valid for 15 years and was renewable.

Etisalat, which recently lost its monopoly status in the United Arab Emirates, has clinched a deal to purchase a 26 per cent stake in Pakistan Telecommunication Company worth $2.6 billion.